What business expenses can I deduct?
Office supplies, software, home office, equipment, mileage (67.5 cents/mile in 2024), professional development, internet/phone (proportional use), contractor fees.
Finance
Freelancer Tax Estimator Calculator
Estimate your tax liability as a freelancer based on your income, expenses, and deductions.
Understand Your Tax Liability
Calculate your estimated taxes owed based on your freelance income and eligible deductions.
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What this calculator does
Freelancers pay all federal and state income taxes plus self-employment taxes (15.3% for Social Security and Medicare). This calculator estimates total annual tax liability based on income, expenses, health insurance, and retirement contributions.
How it works
The calculator starts with income, subtracts business expenses for net earnings, calculates SE tax at 15.3% on 92.35% of net, then applies deductions and progressive tax brackets for federal tax, plus state tax.
Formula
SE Tax = Net Earnings × 0.9235 × 0.153. AGI = Gross − Expenses − SE Tax Deduction − Health Insurance − Retirement. Federal Tax = Brackets applied to (AGI − Standard Deduction). Total = Federal + State + SE Tax.
Tips for using this calculator
- Save 25-30% of every payment for taxes
- Document all business expenses for deductions
- Max out retirement accounts to reduce taxable income
- Self-employed health insurance premiums are deductible
- Pay quarterly estimates to avoid penalties
Frequently asked questions
Do I need to pay quarterly?
Yes, if you expect to owe $1,000 or more. Quarterly dates: January 15, April 15, June 15, September 15. Use Form 1040-ES.
How is SE tax different from income tax?
SE tax funds Social Security and Medicare (15.3% combined). Income tax is separate and progressive. Employees split SE with employers; freelancers pay the full 15.3%.